I often wondered if an EBA is really worth doing because in the end if you had to sue the buyer for the commission would it be really worth it?

So hence the question. What was the process and what was the cost?

A buyer’s broker agreement or exclusive buyers agreement is usually a two-party contract between the buyer and the brokerage firm, and the decision on whether to sue or not is up to the principal broker.

A good buyer agreement should be iron clad and is usually recognized by the courts, providing the brokerage firm fulfilled their obligations under the contract.

The dollar amount of the claim would dictate in which court the case would be heard, and the amounts may vary from one jurisdiction to another.

I, suggest you telephone the local court house and they will give you all the required information about how and where to file a claim.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information

(and the decision on whether to sue or not is up to the principal broker.)

Never crossed my mind. Good Point, It would behoove agents then to talk with their brokers to find out their position on this matter.

I am just asking the question here. Why have EBA if in the end you would have to sue to get your money. Is it realy worth it?
Especially if a buyer has a hard time coming up with their down payment. Even if you won in court you would never get your money.

I personally think a better solution is to get paid for the services an agent offers up front. Time is money and educated people should get paid well like any profession.

Only when it's worthwhile.

http://www.hollywood.com/news/Seinfeld_Loses_Real_Estate_Battle/3611066

"I personally think a better solution is to get paid for the services an agent offers up front. Time is money and educated people should get paid well like any profession."

That's a business model that has really not caught on yet, since most buyers need every penny to buy and don't have the cash up front to pay their agent.

You are absolutely correct. What I've seen agents do is offer both options. Pay upfront and save or pay more at closing.

My experience has been that most consumers do not want to buy and sell fsbo for the same reason that they don't want to pay upfront.

In my opinion (for what it's worth), I think an EBA should be used more to train and educate your buyers. Let them know the benefits of the EBA and using you as an agent, and let them know what happens if they buy without you. Let them know exactly what to do if they are at an open house w/o you. This solidifies in their mind that you are their agent. I think this "training" will bypass most issues.

If they do buy w/o you, then it is up to you and your broker whether it is worth pursuing further.

Even if you win, you lose. Getting the attorney fees paid isn't guaranteed. The buyer having money to pay isn't guaranteed.

There is another approached. Worked for me long ago.

I had this young kid buy a home we had listed. He wanted to back out about a week before the close. Seems he saw a home at an open house that week and decided he liked that one better. He tried to bail out of his government loan. I said you can't legally do that. He said his employer was his friend and would just say he got laid off as a legit way to get out of the contract. So, I used the Ace up my sleeve. I said you're willin to lie to the government to back out of this deal? That's fraud. Fraud is a felony. The FBI investigates felonies when it comes to federal loans. So, if you back out, I'll give the FBI your info and do my best to make sure you end up in prison. We closed a week later.

Now before the 'experts in their own mind' steps in, more than likely nothing would have happened to him as the FBI, while they could do sometime, was probably too busy to do something. It's called a bluff. It worked. The seller didn't get screwed.

Quizz of the day!
If people with guns protect, how come no one is allowed to have a gun around the President, except Sec. Service? Wouldn't more guns provide more protection?

Answer of the day

Some folks with guns are nuts. That's why no one with guns except for an elite few are allowed around the Prez.

Any more questions for Captain Obvious?

ok, now I understand. The normal people with guns can't be trusted either, because they are also not alowed with guns around the president?
Lesson 4 the day. You just can't trust strangers with guns, unless they all wear the same uniform.

p.s. Well, as reported in the news tonight, even someone in uniform can't be trusted, as the pilot flying from Denver to S. Carolina fired his gun in the cockpit.

I have, and won.

Seller (a retired RE broker) sold his property to one of our prospects that we showed the property to, 11 days after the expiration of our listing. We have a clause in our board approved form that addresses this situation. It calls for a commission to be due and payable if the property is sold within 180 days of the expiration, to anyone that we presented the property to. He met the buyer while we were at his home showing it! He also signed acknowledging the prospects who were shown the property upon the listing expiration.

He looked like an idiot on the stand. The judge ripped him apart. He claimed to not understand. The judge just asked him to tell the court what profession he retired from and how many years he was involved in that type of business! That did him in right there.

Congrats! It never fails to amaze me what people will do, including the ones that should know better.
I'm also stunned at all the attorney disbarments and sanctions I've heard about recently.

The question was did anyone ever sue a buyer over a commission.

I haven't, but probably could have. However, it would have cost more in time and money than the commission was worth. (besides the aggravation)

UPDATE: Re: Has anyone ever sued a buyer for commission.

HOMELIFE/VISION REALTY INC. v. HELEN CLUBINE
In the fall of 2005 Buyer executed a ("local") Standard Form "Buyer Broker Agreement", (now called a Buyer Representation Agreement) but subsequently bought through another agent violating the terms of the Agreement and the Superior Court of Justice-Ontario has ruled on April 09, 2008 that the buyer has to pay Homelife their fee, of $21,774.50 plus interest and costs.

Court Decision at the following URL
http://www.canlii.org/en/on/onsc/doc/2008/2008canlii14891/2008canlii14891.html

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .